IRA/Gifts of Stock
GIVING SOMETHING BACK
Have you ever wished you were in a position to do something significant for North, yet questioned your ability to do so, at least right now?
When you consider that your stewardship of God’s blessings in your life is an integral part of our Christian lifestyle, you might realize a greater capacity to support the important institutions in your life, like North. There are advantageous gifts that can be made to North as the result of a conscientious plan to make the best possible use of your resources.
Appreciated Stock
If you have enjoyed substantial gains in the stock market over the past several years, your paper gains might be impressive. To realize those gains- whether you are looking for a higher yield or to diversify or to enjoy yourself- carries as much as a 20% penalty in the form of capital gain tax.
However, if you use even just a few shares of stock instead of cash to make your annual gift or a special gift to North:
- North receives the benefit of the full, fair market value,
- You are credited with making a gift of the same value, even though your cost was much lower, and
- If you itemize your tax deductions, you can deduct the entire value!
Here is all the information you or your broker needs to make a gift of stock to North:
Using Your IRA
If you are age 70 ½ or older, you can make an ‘IRA Charitable Rollover’ gift from your IRA account to North without any federal income tax liability.
Here is how it works:
- Instruct your IRA administrator to make a gift directly from your IRA to North (ask us for a sample letter of instruction)
- IRA Rollovers DO count towards your required minimum distribution (RMD) for the year (although RMDs are temporarily suspended under the CARES Act)
There are some considerations:
- The gift is not subject to income tax therefore it is not tax deductible (which is effectively the same as a 100% deduction)
- Gifts may be outright contributions only
- You may make up to $100,000 in charitable gifts annually from your IRA